Dubai’s Virtual Asset Regulatory Authority (VARA) has penalized 19 VASPs for carrying out unlicensed virtual asset activities and for breaches of VARA’s marketing regulations. The penalties ranged from AED 100,000 – AED 600,000 ( $27,000, to $163,000) depending on the seriousness of the violation.

As per VARA announcement, the Enforcement division continues to pro-actively identify and investigate unlicensed activity and action as appropriate. VARA notes that this serves as a public reminder to consumers, investors and institutions engaging with unlicensed operators that there is significant financial, legal, and reputational risk.

“Enforcement is a critical component of maintaining trust and stability in Dubai’s Virtual Asset ecosystem. These actions reinforce VARA’s mandate: to ensure that only firms meeting the highest standards of compliance and governance are permitted to operate. Unlicensed activity and unauthorized marketing will not be tolerated. VARA will continue to take proactive measures to uphold transparency, safeguard investors, and preserve market integrity.”

All penalized firms have been directed to immediately cease operations and to desist from any further promotion of unlicensed Virtual Asset services in or from Dubai.

VARA has shared the list of VASPs who have been penalized include UAEC Digital Fintech FZCO, MORPHEUS SOFTWARE TECHNOLOGY FZE (FUZE), TON DLT Foundation, GLEEC DMCC, UEEX technology, Triple A Technologies, Hatom Labs, Hokk Finance and many more.

In 2023 VARA Dubai confirmed that the deadline for VA sector to engage in the regulatory license elapsed and that eighteen virtual asset service providers commercially licensed on mainland under Dubai’s Department of Economy and Tourism (DET) had been issued fines for failing to comply with VARA’s directives and regulatory guidance.